Bringing an end to the dispute over Nifty trading in Singapore, the National Stock Exchange (NSE) and the Singapore Exchange (SGX) have received approval from their respective regulators Monetary Authority of Singapore and Sebi for their international financial services centre (IFSC) for trading in Nifty products on the Gujarat International Finance Tec-City (GIFT City).
The proposed NSE IFSC-SGX Connect aims to bring together the trading of Nifty products in GIFT-City and create a larger pool of liquidity comprising international and home market participants, NSE said. Both exchanges are also working to discontinue related arbitration proceedings, NSE added.
NSE had earlier locked horns with SGX over an index derivative that the latter plans to launch in Singapore, which is similar o the NSE s Nifty index. The SGX move came after NSE terminated its licence agreement for the SGX Nifty traded in Singapore. Arbitration proceedings began in the matter after the court last May referred the dispute to an arbitrator. The arbitrator asked SGX to continue listing and trading SGX Nifty contracts beyond August, and barred it from offering its proposed new products until a final decision.
The Connect model, which is subject to further approvals from relevant local authorities, will enable SGX and NSE IFSC members to access Nifty products in GIFT while managing their exposures through their respective clearing corporations.
SGX and NSE will continue to work with all key stakeholders to make the NSE IFSC-SGX Connect operational before the end of 2020, subject to members readiness and receiving all relevant approvals, NSE said.
Vikram Limaye, managing director and chief executive officer of NSE, said, This is a great opportunity to build vibrant markets in GIFT City. We are working on varied product offerings to make GIFT City the hub of activity for all India access products across asset classes for international investors and a gateway for home investors to access international markets.
Loh Boon Chye, chief executive officer, SGX, said, As Asia s most international and connected multi-asset exchange, we are committed to providing our global institutional clients with open, single-point access to Asia.